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1 Page 1 of 7 NEWS, EMPLOYMENT-DDU 64,601D, OFCCP posts FAQ on "Internet Applicant" rule -- OFCCP NEWS (submitted to CCH Online Jan 11, 2006) 2006, CCH INCORPORATED. All Rights Reserved. A WoltersKluwer Company OFCCP posts FAQ on "Internet Applicant" rule -- OFCCP NEWS (submitted to CCH Online Jan 11, 2006) The Labor Department's Office of Federal Contract Compliance Programs (OFCCP) has posted on its website an FAQ regarding its final rule on the definition of "Internet Applicant" and corresponding recordkeeping requirements. The rule is posted at: It reads as follows: [Text of document] Internet Applicant Recordkeeping Rule What is the purpose of the Internet Applicant final rule? When does this Internet Applicant rule become effective and when will Federal contractors have to begin complying with the rule's provisions? Will contractors need to amend their current affirmative action programs in response to the new Internet Applicant rule? How does this Internet Applicant rule change existing rules? What is the definition of an "Internet Applicant" in the final rule? What standard applies to the solicitation of demographic information if a contractor considers both electronic and traditional paper expressions of interest for the same position? What standard applies to the solicitation of demographic information from job applicants if a contractor does not consider electronic expressions of interest for a position? What is the definition of basic qualifications? How would this work in practice? Are employment tests considered basic qualifications? How will OFCCP ensure that contractors do not use basic qualifications to discriminate? What is the definition of "considers the individual for employment in a particular position," for purposes of the definition of "Internet Applicant"? How can a contractor determine that an individual has indicated that he or she is no longer interested in the position? What does the term "Internet or related electronic data technologies" refer to? Is a contractor required to consider for employment every job seeker who expresses an interest in employment through the Internet and possesses the basic qualifications for a particular position? Must a contractor maintain expressions of interest in employment made through the Internet that do not meet the other three criteria contained in the definition of "Internet Applicant"? What records must be maintained from internal and external resume databases? Is there a new requirement under the Internet Applicant rule that the contractor must be able to identify, where possible, the gender, race, and ethnicity of each Internet Applicant? When should contractors collect race, ethnicity, and gender data? What do the Uniform Guidelines on Employee Selection Procedures (UGESP) have to do with the Internet Applicant final rule?
2 Page 2 of 7 Does the Internet Applicant final rule change the text of the UGESP or Executive Order 11246, as amended? What are OFCCP's procedures for evaluating Internet Applicant recordkeeping under the final rule (section ) and UGESP? Where can I read or download a copy of the Internet Applicant final rule? What is the purpose of the Internet Applicant final rule? The Internet Applicant final rule, issued by the Office of Federal Contract Compliance Programs (OFCCP), addresses recordkeeping by Federal contractors and subcontractors about the Internet hiring process and the solicitation of race, gender, and ethnicity of "Internet Applicants." The rule is the product of a lengthy deliberative process, including public input, to develop a definition of "Internet Applicant" applicable in the Internet age (added to 41 CFR ). The recordkeeping requirements of the rule (amending 41 CFR ) will provide meaningful data that OFCCP will use to enhance its enforcement of the nondiscrimination laws. When does this Internet Applicant rule become effective and when will Federal contractors have to begin complying with the rule's provisions? The final rule becomes effective February 6, 2006, one-hundred twenty days after the date of publication in the Federal Register. A contractor's recordkeeping practices must comply with the new rule on that date. For example, by February 6, 2006 a contractor must solicit demographic information about Internet Applicants and retain the records required by the rule for hiring decisions made on or after that date. The rule does not apply retroactively to hiring decisions made before February 6, Will contractors need to amend their current affirmative action programs in response to the new Internet Applicant rule? No. As part of their affirmative action programs (AAPs), contractors are required to analyze personnel activity data to determine whether there are selection disparities. The amendments to the recordkeeping requirements in section will apply to data on hiring decisions made on or after February 6, AAPs created before February 6, 2006 will not need to be amended. How does this Internet Applicant rule change existing rules? The final rule: Defines "Internet Applicants," job seekers applying for work through the Internet or related electronic data technologies from whom contractors must solicit demographic information; Prescribes the records contractors must maintain about hiring done through use of the Internet or related electronic data technologies; and, Explains the records OFCCP will require contractors to produce when evaluating whether a contractor has maintained information on impact and conducted an adverse impact analysis under 41 CFR Part 60-3, the Uniform Guidelines on Employee Selection Procedures. What is the definition of an "Internet Applicant" in the final rule?
3 Page 3 of 7 An Internet Applicant is defined as an individual who satisfies the following four criteria: The individual submits an expression of interest in employment through the Internet or related electronic data technologies; The contractor considers the individual for employment in a particular position; The individual's expression of interest indicates the individual possesses the basic qualifications for the position; and, The individual at no point in the contractor's selection process prior to receiving an offer of employment from the contractor, removes himself or herself from further consideration or otherwise indicates that he or she is no longer interested in the position. What standard applies to the solicitation of demographic information if a contractor considers both electronic and traditional paper expressions of interest for the same position? When a contractor considers expressions of interest for a position via both the Internet or related electronic data technologies and paper applications, the Internet Applicant standard applies to the solicitation of demographic information from all applicants for that position. What standard applies to the solicitation of demographic information from job applicants if a contractor does not consider electronic expressions of interest for a position? For those positions for which the contractor does not consider any electronic submissions, i.e., does not use the Internet or related electronic data technologies, the traditional OFCCP recordkeeping standards apply. That is, contractors must solicit demographic information from job seekers who are "applicants" under the definition of applicant contained in Question and Answer 15 of the Adoption of Questions and Answers to Clarify and Provide Common Interpretation of the Uniform Guidelines on Employee Selection Procedures: 15. Q. What is meant by the terms "applicant" and "candidate" as they are used in the Uniform Guidelines? A. The precise definition of the term "applicant" depends upon the user's recruitment and selection procedures. The concept of an applicant is that of a person who has indicated an interest in being considered for hiring, promotion, or other employment opportunities. This interest might be expressed by completing an application form, or might be expressed orally, depending upon the employer's practice. The term "candidate" has been included to cover those situations where the initial step by the user involves consideration of current employees for promotion, or training, or other employment opportunities, without inviting applications. The procedure by which persons are identified as candidates is itself a selection procedure under the Guidelines. A person who voluntarily withdraws formally or informally at any stage of the selection process is no longer an applicant or candidate for purposes of computing adverse impact. Employment standards imposed by the user which discourage disproportionately applicants of a race, sex or ethnic group may, however, require justification. Records should be kept for persons who were applicants or candidates at any stage of the process. What is the definition of basic qualifications?
4 Page 4 of 7 The "basic qualifications" which an applicant must possess means qualifications that the contractor advertised to potential applicants or criteria which the contractor established in advance. In addition, the qualifications must be: Noncomparative features of a job seeker (e.g., three years' experience in a particular position, rather than a comparative requirement such as being one of the top five among the candidates in years of experience); Objective (e.g., a Bachelor's degree in accounting, but not a technical degree from a good school); and Relevant to performance of the particular position. How would this work in practice? Here is an example of how this would work: A contractor initially searches an external job database with 50,000 job seekers for 3 basic qualifications for a bi-lingual emergency room nursing supervisor job (a 4-year nursing degree, state certification as an RN, and fluency in English and Spanish). The initial screen for the first three basic qualifications narrows the pool to 10,000. The contractor then adds a fourth, pre-established, basic qualification, 3 years of emergency room nursing experience, and narrows the pool to 1,000. Finally, the contractor adds a fifth, pre-established, basic qualification, 2 years of supervisory experience, which results in a pool of 75 job seekers. Under the Internet Applicant rule, only the 75 job seekers meeting all five basic qualifications would be Internet Applicants, assuming the other three prongs of the "Internet Applicant" definition were met. Are employment tests considered basic qualifications? No. Employment tests used as employee selection procedures, including on-line tests, are not considered basic qualifications under the Internet Applicant rule. Contractors are required to retain records about the gender, race, and ethnicity of individuals who take a test used to screen them for employment, regardless of whether the test takers are "Internet Applicants." How will OFCCP ensure that contractors do not use basic qualifications to discriminate? Contractors will not be able to use basic qualifications in order to discriminate because: The rule requires a contractor to retain, for possible review, the expressions of interest it considered, even those of individuals who are not Internet Applicants, for possible OFCCP review. A contractor must similarly retain records of all the basic qualifications used to develop a pool of Internet Applicants. OFCCP will rely on Census and other labor market data to assess contractors' hiring practices for potential discrimination and will carefully review the basic qualifications. OFCCP's compliance evaluations will not be limited to an evaluation of those records produced by the contractor. During compliance evaluations OFCCP will continue to look broadly at all aspects of a contractor's compliance with its obligations to refrain from discrimination in recruitment, hiring, and other employment practices, including the possible adverse impact of screens for basic qualifications. What is the definition of "considers the individual for employment in a particular position," for purposes of the definition of "Internet Applicant"?
5 Page 5 of 7 The definition of "considers the individual for employment in a particular position" for purposes of paragraph (1)(ii) of this definition means that the contractor assesses the substantive information provided in the expression of interest with respect to any qualifications involved with a particular position. A contractor may establish a protocol under which it refrains from considering expressions of interest that are not submitted in accordance with standard procedures the contractor establishes. Likewise, a contractor may establish a protocol under which it refrains from considering expressions of interest, such as unsolicited resumes, that are not submitted with respect to a particular position. If there are a large number of expressions of interest, the contractor does not "consider the individual for employment in a particular position" by using data management techniques that do not depend on assessment of qualifications, such as random sampling or absolute numerical limits, to reduce the number of expressions of interest to be considered, provided that the sample is appropriate in terms of the pool of those submitting expressions of interest. How can a contractor determine that an individual has indicated that he or she is no longer interested in the position? The Internet Applicant rule explains that a contractor may conclude that an individual has removed himself or herself from the selection process or has otherwise indicated lack of interest in the position based on the individual's express statement or on the individual's passive demonstration of disinterest. For example, passive disinterest may be shown by: Declining a contractor's invitation for a job interview; Declining a job offer; or Repeatedly failing to respond to a contractor's telephone inquiries or s asking about his or her interest in a job. A contractor may also presume a lack of continuing interest based on a review of the job seeker's expression of interest. For example, statements pertaining to (1) the individual's interest in the specific position or type of position at issue, (2) the location of work, or (3) his or her salary requirements, may provide the basis for determining the individual is no longer interested in the position, provided that the contractor has a uniformly and consistently applied policy or procedure of not considering similarly situated job seekers. What does the term "Internet or related electronic data technologies" refer to? While OFCCP will not provide a precise definition of the term "Internet or related electronic data technologies" in recognition of rapid changes in technology in this area, OFCCP does intend this term to include the types of technologies referenced in the preamble to the proposed UGESP Additional Questions and Answers. Those six types of Internet-related technologies and applications that are widely used in recruitment and selection today include: Electronic mail/ Resume databases Job banks
6 Page 6 of 7 Electronic scanning technology Applicant tracking systems/applicant service providers Applicant screeners Is a contractor required to consider for employment every job seeker who expresses an interest in employment through the Internet and possesses the basic qualifications for a particular position? No. OFCCP does not provide a blanket requirement that contractors must consider any and all expressions of interest they receive, regardless of the manner or nature of the expression of interest -- even if the job seeker possesses the basic qualifications. If the contractor has established standard procedures that job seekers must follow in order to express an interest in employment, the contractor does not have to consider those individuals who do not follow those procedures. Similarly, the contractor does not have to consider for employment individuals who do not specify a particular position, so long as that is the contractor's consistent practice. Additionally, if there are a large number of expressions of interest, the contractor may limit the number of individuals it considers by using random sampling, absolute numerical ceilings, or other data management techniques, provided the sampling procedure is appropriate. Must a contractor maintain expressions of interest in employment made through the Internet that do not meet the other three criteria contained in the definition of "Internet Applicant?" No. Under section (a), contractors avoid this burden even if there are large numbers of expressions of interest, because contractors are not required to retain records regarding individuals who were never considered for a particular position. The rule generally requires a contractor to retain all the expressions of interest it considered, even those of individuals who are not Internet Applicants. However, when a contractor searches an external database, it is required to maintain only copies of resumes of those job seekers who met the basic qualifications for the position and who are considered by the contractor. Further, a contractor must retain records of all the basic qualifications used to develop a pool of Internet Applicants. What records must be maintained from internal and external resume databases? The Internet Applicant rule requires contractors to maintain any and all expressions of interest through the Internet or related electronic data technologies as to which the contractor considered the individual for a particular position, except for searches of external resume data bases discussed below. Contractors also are to maintain records identifying job seekers contacted regarding their interest in a particular position. In addition, for internal resume databases, the contractor must maintain a record of each resume added to the database, a record of the date each resume was added to the database, the position for which each search of the database was made, and corresponding to each search, the substantive search criteria used and the date of the search. Also, for external resume databases, the contractor must maintain a record of the position for which each search of the database was made, and corresponding to each search, the substantive search criteria used, the date of the search, and the resumes of any job seekers who met the basic qualifications for the particular position who are considered by the contractor. These records must be maintained regardless of whether the individual qualifies as an "Internet Applicant" under Is there a new requirement under the Internet Applicant rule that the contractor must be able to identify, where possible, the gender, race, and ethnicity of each Internet Applicant? The obligation to solicit demographic information from job applicants is not new. The Internet Applicant rule adds that a contractor is required to solicit and collect such data from each applicant or Internet Applicant, whichever is applicable to the particular position. Voluntary self-reporting or self-identification is still generally the preferred method for collecting data on race, ethnicity, and gender, but in situations where self-reporting is not practicable or feasible, observer information may be used to identify race, ethnicity, and gender.
7 Page 7 of 7 When should contractors collect race, ethnicity, and gender data? Under the Internet Applicant rule, contractors are required to solicit race, ethnicity, and gender data from all individuals who meet the definition of "Internet Applicant" or the traditional definition of "applicant" depending upon which standard is applicable to the particular position. OFCCP does not mandate a specific time or point in the selection process that contractors must solicit this information, so long as the information is solicited from all Internet Applicants or traditional applicants, as appropriate. What do the Uniform Guidelines on Employee Selection Procedures (UGESP) have to do with the Internet Applicant final rule? Nondiscrimination laws require employers to solicit race, gender, and ethnicity data from "applicants" under the Uniform Guidelines on Employee Selection Procedures (UGESP). UGESP Q&As assist employers in implementing UGESP. On March 4, 2004, the four UGESP agencies (the Equal Employment Opportunities Commission, the Department of Labor, the Department of Justice, and the Office of Personnel Management) published a proposed supplemental Q&A document in the Federal Register seeking comments under the Paperwork Reduction Act (69 FR 10152). That document has not been finalized and is still under consideration. In the coming months, the UGESP signatory agencies will continue to coordinate interagency discussions concerning the Q&As. In the Preamble to the March 4, 2004 document, the UGESP agencies expressly contemplated that "each agency may provide further information, as appropriate, through the issuance of additional guidance or regulations that will allow each agency to carry out its specific enforcement responsibilities." (69 FR 10153). Does the Internet Applicant final rule change the text of the UGESP or Executive Order 11246, as amended? No. The Internet Applicant final rule does not change either the UGESP or the Executive Order 11246, as amended. Contractors have an obligation to refrain from unlawful employment practices regardless of how the term "Internet Applicant" is defined. The final rule only clarifies OFCCP's regulations and procedures implementing recordkeeping under Executive Order 11246, as amended. What are OFCCP's procedures for evaluating Internet Applicant recordkeeping under the final rule (section ) and UGESP? To make clear OFCCP's procedures regarding "Internet Applicant" recordkeeping under both rules, OFCCP has added a new regulatory provision, section (d). This provision explains that when evaluating whether a contractor has maintained information on impact and conducted an adverse impact analysis under UGESP (41 CFR Part 60-3) with respect to Internet hiring procedures, OFCCP will require only those records relating to the analyses of the impact of employee selection procedures on "Internet Applicants" as defined in the Internet Applicant final rule (and the impact of employment tests). Where can I read or download a copy of the Internet Applicant final rule? A Copy of this Final Rule is available on the Internet at or in PDF format at Copies in alternative formats may be obtained by calling OFCCP at (202) (voice) or (202) (TDD/TTY). The alternate formats available are large print, electronic file on computer disk, and audiotape. OFCCPNews AgencyNews 2006, CCH INCORPORATED. All Rights Reserved. A WoltersKluwer Company
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